Boeing Machinists in St. Louis will vote Sunday on a new contract.
The tentative deal reached yesterday is designed to lower the cost of making fighter jets and avoid layoffs here. The St. Louis Post-Dispatch reports that the deal sweetens buyouts for veteran workers and cuts wages for many future hires, while setting raises, bonuses and benefits through 2022.
Boeing officials say the changes are needed in order to reduce the cost of building the F/A 18 Super Hornet, with the hopes of keeping the line going after 2016.
The union vote comes one day before the Pentagon releases its next fiscal budget, which isn't expected to include any new Super Hornets for the Navy.
Boeing officials plan to ask Congress to add 20 new Super Hornets when they revised the budget.
Boeing employees in St. Louis should know later this year if they're going to keep building F-18 Super Hornet fighter jets for the U.S. Navy after 2016.
The Navy had planned to switch over to the new F-35 Joint Strike Fighters built by Lockheed-Martin. But the F-35 project has been plagued with delays, cost overruns and other problems. So the omnibus spending bill signed into law last week (Jan. 17) contains a down payment of $75 million for 22 of Boeing's F-18s, even though the Navy didn't ask for them.
The law requires Navy officials to take another look at adding to the existing F-18 fleet as a hedge against more problems with the F-35.
JEFFERSON CITY, Mo. (AP) — Governor Jay Nixon says the incentive package Missouri offered Boeing showed the state is "ready to compete" in the global economy.
His statement came early Saturday morning, just after Boeing announced its new 777X airplane will be built in the Puget Sound region of Washington state. Boeing production workers agreed to concede some benefits in order for that to happen.
Nixon thanked the General Assembly, community colleges and local business and labor partners for the "nationally-recognized proposal," which had authorized up to $1.7 billion in tax incentives over two decades.
He also said that Boeing's decision last month to shift some research positions to Missouri is "proof positive" that the state is a "top destination for high-tech jobs and investment."
SEATTLE (AP) — Boeing machinists have approved a contract that would concede some pension and health care benefits in order to secure assembly of the company's new 777X airplane in the Puget Sound region.
The offer fractured the union and drew unusual pleas from local politicians who said the deal is necessary to support the region's economic future. Boeing had been exploring the prospect of building the 777X elsewhere, a move that could've triggered a steady exodus of aerospace jobs from a region where Boeing was founded.
Local union officials urged their 30,000 members to oppose the deal, arguing that the proposal surrenders too much at a time when the company is profitable.
After machinists rejected an initial proposal in November, Boeing received submissions for 54 locations in 22 states that wanted the 777X work.